Thursday’s trade: FIIs pull out ₹1,417 cr, biggest selling of the week; DIIs offset losses with buying

As per NSE data, FII buying value stood at ₹6,791.35 crore on Thursday in the Indian equities, while it sold a whopping ₹8,208.59 crore. This led to an outflow of at least ₹1,417.24 crore in the day overall.

Meanwhile, DIIs buying was to the tune of ₹7,010.44 crore in the domestic equities, while they sold somewhat ₹5,424.38 crore. Hence, they were net buyers with an inflow of ₹1,586.06 crore in the day. Unlike FIIs, DIIs have made their largest buying of the week.

Sensex and Nifty 50 continued to fall for the fifth day straight. More rate hike worries heightened after the central bank’s minutes hinted at the need to bring down inflation in 2023-24 as this economic indicator still remains high and poses the biggest threat to the macroeconomic outlook ahead.

On Thursday, Sensex dipped by 139.18 points to end at 0.23%, while Nifty 50 shed 43.05 points or 0.25% to close at 17,511.25.

But markets have been in deep red since February 17, 2023. In 5 trading sessions, Sensex has tumbled by 1,713.71 points or 2.79% and Nifty 50 has plummeted by 524.6 points or 2.91%.

However, this is not the case with FIIs and DIIs. So far in the week, both the category investors have shown a mixed pattern as of now.

FIIs started the week as sellers with an outflow of merely ₹158.95 crore on February 20th but took a U-turn to become buyers on February 21st with an inflow of ₹525.80 crore in the equities. However, when Sensex and Nifty 50 dropped by more than 1.5% each on Wednesday, FIIs sold around ₹579.82 crore. Hence, the latest reading would be a second consecutive selloff.

On the other hand, DIIs have been more net buyers this week. They pumped in ₹86.23 crore on February 20th, while taking an opposite route unlike FIIs, and emerged as sellers with an outflow of ₹235.23 crore on February 21st. But they came back to buying on February 22nd with an investment of ₹371.56 crore.

Going forward, Ajit Mishra, VP – of Technical Research, Religare Broking said, “The pace of decline was gradual till Tuesday but a sharp cut in the US markets has completely changed the tone. Indications are pointing towards the same tone to continue, with the next major support around the 17250-17400 zone. In case of any rebound, the 17700-17900 zone would act as a strong hurdle. Traders should continue with a “sell on rise” approach and limit positions.”

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